
This creamy butternut squash butter chicken transforms the classic Indian favorite with a seasonal twist that adds natural sweetness and depth. The velvety butternut squash melds perfectly with warm spices and tender chicken for a comforting dinner that feels both familiar and excitingly new.
I first made this recipe when looking for ways to use up an abundance of butternut squash from our garden. The moment my spoon hit the sauce, I knew this would become our new cold weather tradition. My kids now request this dish specifically when friends come over.
Ingredients
- Boneless skinless chicken thighs: Ensure juicy tender bites that won't dry out during cooking
- Butternut squash puree: Adds natural sweetness and velvety texture while sneaking in extra vegetables
- Full fat coconut milk: Creates richness without heaviness found in traditional cream
- Garam masala: Brings authentic warmth with its complex spice blend; make sure yours is fresh for best flavor
- Fresh ginger: Adds essential brightness that balances the rich sauce; use a microplane for easy grating
- Butter: Stirred in at the end creates that signature glossy finish that makes butter chicken irresistible
Step-by-Step Instructions
- Sauté the Aromatics:
- Cook onions in vegetable oil over medium heat until they become translucent and slightly golden around the edges. This takes about 5 minutes and creates the flavor foundation for the entire dish. The onions should soften completely without browning too quickly.
- Bloom the Aromatics:
- Add ginger and garlic to the softened onions and cook just until fragrant, about 1-2 minutes. Watch carefully as garlic burns quickly and becomes bitter. The mixture should smell intensely aromatic when ready.
- Brown the Chicken:
- Add chicken pieces to the aromatic base and cook until they develop a golden color on all sides, approximately 8-10 minutes. The chicken doesn't need to be fully cooked through yet but should have nice caramelization for depth of flavor.
- Develop the Spice Layer:
- Sprinkle all the spices directly onto the chicken and cook for 1-2 minutes until they coat everything evenly and become fragrant. This brief toasting awakens the essential oils in the spices and prevents any raw spice flavor in the final dish.
- Create the Sauce:
- Reduce heat to low and introduce the butternut squash puree, coconut milk, and tomato puree. Stir thoroughly to combine everything into a smooth, cohesive sauce. The vibrant orange color should be uniform throughout.
- Simmer to Perfection:
- Allow the mixture to simmer gently for about 20 minutes, stirring occasionally to prevent sticking. During this time, the flavors meld together while the chicken cooks through completely and becomes tender. The sauce will gradually thicken to a luscious consistency.
- Finish with Butter:
- Stir in the butter during the final few minutes of cooking. This creates the signature silky mouthfeel and adds a beautiful sheen to the sauce. Make sure the heat is low enough that the butter melts smoothly without separating.
- Garnish and Serve:
- Adjust seasoning with salt and pepper to taste, then sprinkle with fresh cilantro leaves before serving. The bright green herbs create visual appeal and add a fresh counterpoint to the rich sauce.

The butternut squash is truly the secret hero of this dish. I discovered this variation when trying to make traditional butter chicken healthier without sacrificing flavor. My father in law who claims to dislike squash in any form ate three helpings before I revealed the secret ingredient.
Make Ahead Magic
This dish actually improves with time as the flavors continue to develop and meld together. You can prepare it up to two days in advance and refrigerate in an airtight container. When reheating, add a splash of water or coconut milk if the sauce has thickened too much, and warm over low heat until just simmering. This makes it perfect for entertaining since you can focus on your guests rather than cooking when they arrive.
Dietary Adaptations
This recipe is naturally gluten free making it ideal for mixed dietary needs. For a dairy free version, simply replace the butter with coconut oil or ghee if tolerated. The coconut milk already provides plenty of creaminess. For a vegetarian option, substitute the chicken with firm tofu or chickpeas, reducing the simmering time to about 10 minutes. The butternut squash provides such wonderful texture that plant based eaters won't miss the meat.
Serving Suggestions
While traditional basmati rice makes an excellent companion, consider serving this butter chicken with cauliflower rice for a lower carb option. The sauce is so flavorful that even simple steamed vegetables become extraordinary when coated in it. For a complete Indian inspired feast, serve alongside quick pickled onions, cucumber raita, and warm naan bread for scooping up every last bit of sauce. A simple side of wilted greens with lemon adds brightness to balance the rich main dish.
Recipe FAQs
- → Can I use chicken breast instead of thighs?
Yes, you can substitute chicken breast for thighs. However, be careful not to overcook as breast meat tends to dry out more easily. Reduce the simmering time to about 15 minutes or until the chicken reaches 165°F (74°C) internal temperature.
- → How do I make homemade butternut squash puree?
To make homemade butternut squash puree, cut a butternut squash in half lengthwise, scoop out the seeds, and roast cut-side down at 400°F (200°C) for 40-45 minutes until tender. Once cooled, scoop out the flesh and blend until smooth.
- → Is this dish spicy?
This dish has a mild to moderate heat level from the chili powder. You can adjust the spiciness by reducing or increasing the amount of chili powder according to your preference.
- → Can I freeze this butternut squash butter chicken?
Yes, this dish freezes well. Cool completely, then store in airtight containers for up to 3 months. Thaw overnight in the refrigerator and reheat gently on the stovetop, adding a splash of water or coconut milk if needed to thin the sauce.
- → What can I serve with this dish besides rice or naan?
This dish pairs beautifully with cauliflower rice for a lower-carb option, quinoa for added protein, or a simple cucumber-yogurt salad to balance the rich flavors. Roasted vegetables like broccoli or carrots also make excellent sides.
- → Can I make this dish vegetarian?
Absolutely! Replace the chicken with firm tofu, chickpeas, or a mix of hearty vegetables like cauliflower, carrots, and potatoes. Adjust cooking times accordingly, as vegetables and tofu will cook faster than chicken.